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There are more than 220 manufacturing software solutions to address all aspects of manufacturing, from product inception to customer delivery. We’ve written this buyer’s guide to help manufacturers navigate this complex market.
Here’s what we’ll cover:
Manufacturing ERP software assists with the planning and execution of manufacturing projects by tracking suppliers, materials and production costs and supporting the maintenance of relationships with end customers. This class of software covers the gamut of ERP--from the accounting systems that track accounts for international giants, to the shop scheduling system that your local metal shop uses. Regardless of the scale of the system, software for manufacturers helps increase productivity and improve management of the product lifecycle--from design concept to production planning to field service.
|Material Requirements Planning (MRP)||Automates the front end of the production process. Functions include planning and costing of materials, labor and equipment; automated quoting and order processing; and resource scheduling. Systems should also process advanced shipping notification from suppliers to reduce receiving errors and report any changes in cycle counts for inventory management.|
|Manufacturing Execution System (MES)||Controls the actual production phase and shop floor operations. Functions include work-in-progress reporting, production tracking, labor tracking, equipment utilization and scrap reporting.|
|Manufacturing Accounting||Manages all of the financial transactions and operations for a company. In addition to the traditional accounting functions of general ledger, accounts payable and receivable, inventory and payroll, the accounting application includes support for sales orders, purchase orders, change orders, work-in-progress reports and job costing modules.|
|Production Planning & Scheduling||Creates production schedules, including reviewing inventory levels, tracking lead times and making build-versus-buy decisions. This is a subset of MRP; planning and scheduling does not generally include automatic ordering or inventory tracking functionality.|
|Product Lifecycle Management (PLM)||Organizes all manufacturing information around to the designing, producing, supporting and disposing of manufactured goods. May include computer-aided design software, bill of materials data and document management.|
Over the years, we've spoken to thousands of manufacturing software buyers. As a point of reference, we thought it would be helpful to provide potential buyers with an overview of past clients' pain points and reasons for switching to a new software system. Key questions analyzed by the report include:
You can see a summary of our findings below, or access the full report here.
The specific type of system you need depends on what kind of company you are, what problems you’re experiencing, or what objectives you set. Here are a few common situations in which buyers find themselves.
You’re looking to consolidate applications into a single system.
This kind of buyer values the seamless integration of data and processes that comes from having one ERP software system for all functions. For example, it can be helpful to have a full-suite system for estimating, work-in-progress management and accounting so you can automatically turn an estimate into a budget for project management, and then match invoices to project status while allocating job costs. If you’re a large manufacturer, you should evaluate enterprise-level suites like SAP, Oracle, Sage ERP or Microsoft Dynamics AX. We recommend systems such as Epicor, NetSuite and MISys Manufacturing for small to mid-sized firms.
You run a subsidiary manufacturing division of a larger company.
Businesses running from multiple locations need a way to stay tuned in to one another. Smaller subsidiaries will require a smaller, less robust system to complement the larger system used at the company’s main headquarters. You’re likely looking for a “two-tier ERP.” NetSuite, for example, is a good choice here because of its fast time to deployment, which is useful for a division that needs to get up and running with an ERP system quickly.
You need to improve one process (e.g. shop floor operations).
Some buyers will find that they only need a single application, such as manufacturing resource planning software, to improve their production. If you’re in a small job shop industry like sheet metal fabrication, an efficient MRP system that can schedule the production of each customer’s order is key. Job shop specialities have a smaller scope, and need a solution that suits their focus. Exact JobBOSS and Casco ShopVue are good solutions here as they both offer strong MES and job shop control.
You’re a small manufacturer.
Small manufacturers often spend too much time tracking information such as inventory in spreadsheets or by other manual means, which is prone to errors. You need something more reliable than a “pen and paper” method of managing important data, and you are probably on a tight budget. A good solution here is Fishbowl--an affordable program that has the ability to integrate with QuickBooks, which is useful given that many small manufacturers are already using this program for their accounting needs.
You’re a job shop or process manufacturer with unique needs.
General manufacturing systems aren't specialized enough for you. If you’re a process manufacturer, for instance, you may have difficulty with your bill of materials functionality. You’re the type of buyer who will rely heavily on a system that includes a strong inventory control feature that can adjust to many different kinds of units of measurement.
A system such as ProcessPro that is specifically designed for process manufacturers would be a good fit. You will also need inventory management that can integrate with your most important system: the MRP application. Infor is a good provider for niche manufacturers to consider as they offer extensive vertical functionality thanks to their acquisitions of smaller, niche providers.
Meanwhile, job shops such as metal fabricators or aerospace manufacturers also have specialized needs. For example, the shop floor may have special fabrication machines which require special control systems that integrate with specific job shop software. Additionally, some organizations will require industry-specific functionality. For this reason, we have created unique guides for aerospace, apparel, chemical, electronics, food and beverage and pharmaceutical manufacturers.
Several industry-wide trends are worth keeping in mind as you shop for a manufacturing software solution:
Some of the specific benefits of implementing a manufacturing solution include:
For more information on the important people, events and milestones that shaped manufacturing technologies, visit our historical timeline.